Population boom in Albany??

7 May 2014 Albany 0 Comment

In Perth, the current vacancy rate for rentals is 3.9%. This has increased over the last two years from 1.8%. Yet in our lovely part of the world, only 1.6% of all rentals are currently vacant; a massive drop from 4.1% two years ago. Albany has also recorded an increase in average house rent of 6.3% for the year compared to a fall of 2.1% in Perth.

So what is going on?

Is Perth just suffering from the softening in mining? Is it because Albany rents are more affordable than Perth (average of $320pw versus $460pw in Perth)? Or are people realising the benefits of living in a place like Albany where we take uncrowded roads, pristine beaches and friendly people for granted?

We think it’s probably a combination of all these things. Professionals Albany have certainly noticed an increase in applications from new arrivals to Albany; young families moving due to work transfers or new jobs, singles returning to Albany to be close to family, and those of all ages seeking a better lifestyle. As of today, we only have one property currently vacant over the several hundred that we manage.

Also curious is the strength of demand from home buyers, particularly in lower price brackets. Curious because this is traditionally a first home buyer segment and strength here often results in weakness in rentals as tenants become first home buyers. This is clearly not the case at the moment.

So if rentals and affordable homes are getting snapped up, are we experiencing a population boom?